JOHANNESBURG - The rand eased off its best levels in two months and South African stocks sank on Tuesday, taking their lead from other emerging markets where a rally ran out of steam.

By 1500 GMT the rand had weakened 0.1 percent to 15.2100 per dollar, little changed after opening at 15.0650.

But analysts said that Finance Minister Pravin Gordhan's budget speech on Wednesday could ease concerns about a potential ratings downgrade and revive the currency's recent rally.

The rand is nearly nine percent up on a month ago, and a well-received budget could see it extend gains, traders said.

"International rating agencies are going to focus on how Gordhan and his colleagues are going to reduce state spending, increase revenues without killing the already ailing economy in the process, and manage growing debt and deficit levels," analysts at NKC African Economics said in a research note.

Bonds were firmer, shedding 3.5 basis points to 9.16 percent.

South Africa's credit status is hovering on a precipice as ratings agencies Fitch and Standard and Poor's both have South Africa just one notch above sub-investment grade.

The economy, which is barely growing, faces headwinds including power constraints and depressed commodity prices.